Why Pools Were Created — And Why They Still Matter

You may already be aware that Public Entity Partners is a unique type of insurance organization. But have you ever wondered why insurance pools like ours exist — or how this one came to be?

Here’s a quick look at where it all started, why pooling was established in Tennessee and why it remains a valuable resource for local governments like yours.

The Problem: Cities Left Behind by the Commercial Market

In the late 1970s, many cities and towns across Tennessee were struggling to find affordable insurance. In the 1980s, the commercial insurance market retreated from the local government insurance marketplace. Commercial insurers were either raising premiums, limiting coverage or pulling out of the public sector altogether. Local governments were left vulnerable, with fewer options to protect their people, property and operations.

The Solution: A Pool Created by Us, for Us

Recognizing the challenge, the Tennessee General Assembly passed legislation in 1979 to allow local governments to join together and self-insure through a shared public risk pool.

This legislation, passed by the Tennessee General Assembly, illustrates that our state legislature saw the value of public risk pooling as a means of creating a stable local government insurance marketplace that would provide:

• Coverages specific to public sector activities.
• Cost savings and stability.
• Specialized risk management services.

These were all benefits that Tennessee municipalities were not receiving from commercial insurance companies.

In 1979, the cities of Athens and Hendersonville signed the state’s first interlocal agreement to pool their resources and manage risk together. That agreement marked the beginning of what would become Public Entity Partners — originally known as the TML Risk Management Pool.

We weren’t just the first pool in Tennessee — we were the first statewide tort liability insurance pool in the nation.

What Makes a Pool Different?

Public Entity Partners isn’t a commercial insurance company. We’re a not-for-profit risk-sharing pool, and that distinction makes all the difference:

• We exist solely to serve Tennessee local governments.
• We’re governed by members. Our Board is made up of municipal officials and managers from across the state. This year, we’re holding our first member vote to confirm our board members at our annual Risk and Insurance Symposium.
• We return surplus dollars to our members. More than $141 million in dividends has been returned since our founding, which does not occur with commercial insurance companies.
• We offer support that goes beyond insurance. From safety grants and scholarships to training, legal resources and property valuation services — we’re here to help you prevent losses, not just cover them.
• Our focus is on loss prevention and risk management. When losses are prevented and risks are managed, employees go home safely at night, public property is protected, the public is safe, public operations are more efficient and costs are controlled.
• We provide insurance coverage to meet the needs of local governments.

The Value of Pooling: Then and Now

Pooling was created because local governments needed a better option. More than 45 years later, it’s still working — because we’re stronger together.

As a pool, we’re able to:

• Provide stable, reliable coverage — even in volatile markets.
• Deliver services tailored to the public sector.
• Keep the focus on your needs, not corporate profit margins.
• Help members reduce risk and lower long-term costs.

In short, Public Entity Partners was created for moments like the one that inspired our founding — when cities and towns need a trusted partner who puts them first.

Looking Ahead — Together

From two cities pooling their resources in 1979 to nearly 500 members strong today, we’ve grown because pooling works. It’s local governments supporting one another, protecting each other and solving problems together.

That’s the power of partnership. That’s the strength of the pool. And that’s why we’re proud to serve you.